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Wednesday, Apr 24
Though Zynga (ZNGA) beat Q1 estimates thanks to strong FarmVille 2 bookings, its quarterly...
Though Zynga (ZNGA) beat Q1 estimates thanks to strong FarmVille 2 bookings, its quarterly metrics help explain its poor Q2 guidance. Daily active users (DAUs) fell 8% Q/Q and 21% Y/Y in Q1 to 52M, after having fallen 6% Q/Q in Q4. Monthly active users fell 15% Q/Q and 13% Y/Y to 253M, monthly unique payers fell 14% Q/Q and 30% Y/Y to 2.5M, and average daily bookings per DAU fell 2% Q/Q and 11% Y/Y to $0.055. Cost controls are keeping Zynga from witnessing huge cash burn: R&D spend -31% Y/Y, sales/marketing -52%, G&A -41%. Only $2.5M worth of buybacks took place. Can real-money gambling help turn the tide? Shares -9.2% AH. (Q4 data) (PR)